Real Estate Tax Rates

In the tax rate hearing last night 1/11, Diane O’Connor, Principal Assessor explained the calculation method for the property tax valuation and the single tax rate was voted on by the Board of Selectmen.  2008 sales are used to derive values, adding some sales from 2007 so there is enough population of sales to be directionally correct (a minimum of 2% of total homes sold per regulation by Massachusetts Department of Revenue).  Also the calculation removes forced sales and foreclosures per regulation.  While you may be seeing current market conditions as being much lower than your assessment, the 2009 sales will not be applied to the valuation until next year.  Overall, the property valuations are simply a means to allocate taxes among citizens and businesses.  If your valuation looks a bit high to the current December- January market conditions, compare your home’s valuation to similar properties  for parity.

Proposed valuations listings is now available online.   View your property online at town website at:

The Assessor’s office recommends reviewing your valuation and calling them with questions and concerns.  Link to the Town Assessor’s page

The average home dropped from $419,600 to $416,700, a less than 1% decrease.  The proposed tax rate for 2010 is  $14.38, an increase of $.62 cents and the average tax bill will increase $218 or 3.8%.

The Board of Selectmen also voted to maintain a uniform tax rate between commercial, open space and residential properties.  Per the Assessor’s numbers, a 5% shift increase in industrial taxes would raise the average industrial tax bill by $1,759 and lower the average homeowner’s bill by $79.  Selectman Jeff Amberson and the Board of Assessors both cited attracting and retaining businesses in town in their recommendations to maintain the single tax rate.  Of the 11 surrounding only 3 have higher commercial rates, Framingham, Marlborough and Worcester.

Northborough’s proposed average tax bill of $5,992, ranks 6th of the 9 adjacent communities with Westborough, Southborough and Hopkinton coming in with higher average bills.

Update: In reference to emails regarding recent 2009 comparing property sales to the valuations, here is a Mass DOR document which details how the valuations must be done, see pages 4 and 5.  This document details that the FY2010 computed valuations will be based on 2008 “arm’s length” sales, took into account any market down turn that existed in calendar year 2007 and 2008, but not 2009.  It is important to remember that the percentages which are typically reported in the media also include distressed sales, estate sales, short sales and any other non-arm’s length sale.

http://www.mass.gov/Ador/docs/dls/bla/Guidelines.pdf

If you still have questions, call the Assessor’s office at 508-393-5005 and  ask for either Sue or Mary who can further clarify.